Georgi Kamburov

Jones Soda Co (USA) (OTCMKTS:JSDA) Jumps Up

by Georgi Kamburov September 8, 2015

Right before the weekend the stock of Jones Soda Co. (OTCMKTS:JSDA, JSDA message board) managed to add nearly 7% to its value closing at $0.3475. Throughout the day investors exchanged 279 thousand shares, a significant increase from 30-day average of 66.7 thousand and the 37 thousand shares from the previous session. Will the positive performance continue though?

JSDA is far from the typical pennystock venture, in fact, it is a former NASDAQ-listed company. That , however, doesn't mean that they are a less risky choice. Poor financial performance and mounting levels of debt caused Jones Soda to be delisted from the NASDAQ back in September 2012. In order to improve its state the company re-hired Ms. Jennifer Cue, this time appointing her as CEO, and a turnaround strategy was implemented. So far the plan is successful.

The company has been reporting growing revenues while the net loss has been shrinking. The latest quarterly report showed that as of June 30 they had:

• $667 thousand cash
• $6.9 million total current assets
• $4.47 million total current liabilities
• $4.26 million revenue
• $116 thousand net loss

Year-over-year the generated revenues is up by close to $500 thousand while the net loss is down by nearly 4 times. Despite its progress JSDA have not been able to become a profitable entity. The current cash reserves could also raise some concerns. The company expects that it will have sufficient funds to meet its needs through December 31, 2015. Beyond that, however, they might be forced to look for external sources of capital.

If JSDA are able to continue growing their operations they could enjoy increased support from investors. For now though the ticker's volatility should not be underestimated and any trades should be preceded by doing your own research. 

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